Cheque Dishonour under S.138 of Negotiable Instruments Act, 1881 and Effect of Multiple Cheques on Sentence

Cheque Dishonour under S.138 of Negotiable Instruments Act, 1881 and Effect of Multiple Cheques on Sentence

Allegations and Controversy

The facts are that the petitioner [Accused] owed Rs. 28 lakhs to the parents of the complainant which was duly accepted by the Accused and also acknowledged in writing. Subsequently, a settlement was arrived at between the petitioner and respondent wherein the petitioner agreed to pay a sum of Rs. 12 lakhs to Complainant vide his handwritten undertaking dated 10.04.2018 and issued 4 cheques of Rs 3 lakhs each. All the cheques on presentation were dishonoured and the respondent filed four complaints under Section 138 of the Negotiable Instruments Act. 

In the present case different complaints were filed, and different orders of sentence were passed. 

There were 4 different orders of conviction against 1 common accused. 

Concurrent Sentences in Conviction

The issue here was whether concurrent sentences would be allowed ?

Court was of the view that all the complaints arise from a single transaction. This is clearly evident as the Accused had admitted the loan in his own handwriting and further that he owes Rs. 12 lakhs to the respondents. The loan transaction was one, the admitted debt was one of Rs. 12 lakhs for which four cheques were issued. Issuance of four different cheques do not make it four different transactions.

In the present case, since the cheques in question were issued based upon a single transaction, the sentence should be running concurrently in all four complaint cases.

The net conclusion was that the sentences awarded by the learned Magistrate under Section 138 of the Negotiable Instruments Act, shall run concurrently. With regard to non payment of the fine, the default sentence shall run separately. 

For more details refer Amit Sharma v. Rama Goyal [2023] GCtR 304 (Delhi).